Why is leverage both beneficial and dangerous for traders?
Imagine that it is vital for you to make an expensive purchase, but the required amount is not at hand and is unlikely to appear in the next few years. Will it stop you? Not really, because you can use an ordinary loan and cope with the problem. A similar situation is observed in the foreign exchange market, where to start work you need to have a decent amount of money. For traders who do not have such an amount, a special program has been created called margin trading. Its main idea is that the broker provides the bulk of the capital required to start trading. This service is called leverage. It is due to the ... (full story)